BANCA TRANSILVANIA S.A. Romanian joint-stock company ...

in 2010 they increased by 1% as compared to the previous year.The commissions collected in the lending process were spread over the loan terms, whosebalance was of 95,141 Th lei as at 31 December 2011, affecting the P&L account in theperiods to come (balance in 2010: 116,969 Th. lei).The provisions created in 2011 to cover lending, and leasing risks as well as other assetsdiminished at the group’s level by 51% as compared to the previous year, negatively affectingthe P&L account with the amount of 315,849 Th lei. In 2010 provisions at group levelincreased by 31.82% as compared to 2009, by adjusting risk management to the currenteconomic context, negatively affecting the P&L account with the amount of 649,945 Th lei.At the end of 2011, personnel expenses amounted to 390,262 Th lei, outbalancing the previousyear’s level by 4.52%, due to the increasing number of employees, from 6,914 to 7,151.Depreciation expenses at group level amounted to 63,787 Th lei, slightly outbalancing those ofthe preceding year by 5%, whereas in 2010 depreciation expenses fell below 2009 levels by10.5%, due to a milder investment activity.In 2011, other operating expenses, such as tax, rents, maintenance and repairs and others,increased by 19% as opposed to 2010, mainly due to greater contributions to the depositguarantee fund in the Banking system.Profitability ratios showed a 100% escalation in 2011 comparatively to 2010, as a result of a122% increase in the net profit; as such, the return on assets was 1.25%, while the return onequity was 13.26%. In 2010, profitability ratios registered a slight depreciation as compared to2009, considering the unremitting financial crisis which affected the global economy, so thatthe return on assets was 0.62% and the return on equity was 6.41%.The solvency ratio determined at Group level, under the Basel accord, recorded a value of13.49% (14,92% at December 31, 2010), considering that the minimum limit required by theBasel II accord is 8%.Capital AdequacyThe table below depicts the adequacy level of the Bank’s capital as at December 31, 2011 andDecember 31, 2010, according to Regulation 18/2006:Capital Adequacy Level Million LEI Million EUR2009 2010 2011 2009 2010 2011OWN FUNDS LEVEL I 1.734 1.943 2.075 410 453 48035